Bobcat Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of
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Bobcat Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $1.80 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1,005,000 million in annual sales, with costs of $485,000. If the tax rate is 21 percent, what is the OCF for this project? (Do not round intermediate calculations.)
Related Book For
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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